IN THE MATTER OF
the Pension Benefits Act, R.S.O. 1990, c. P.8, as amended (the “PBA”)
AND IN THE MATTER OF a Proposal by the Superintendent of Financial Services to make an Order under section 78(1) of the PBA consenting to a payment out of the Otis Canada, Inc. Pension Plan for Draftsmen Local 164, Registration No. 0452516.
Otis Canada, Inc.
c/o Mr. Paul Baston
Fraser Milner Casgrain LLP
1 First Canadian Place
100 King Street West
NOTICE OF PROPOSAL
I PROPOSE TO MAKE AN ORDER under section 78(4) of the PBA, consenting to the payment, out of Otis Canada, Inc. Pension Plan for Draftsmen Local 164, Registration No. 0452516 (the “Plan”) to Otis Canada, Inc. (the “Applicant”), in the amount of $1,960,071.00 as at March 31, 2006 plus investment earnings thereon to the date of payment, and adjusted for actual expenses incurred in connection with the application to the Superintendent of Financial Services for consent to the refund of surplus to the Applicant.
I PROPOSE TO MAKE THE ORDER effective only after the Applicant satisfies me that any payments to which members, former members and any other persons are entitled including those arising out of the Surplus Sharing Agreement, have been made or otherwise provided for.
I PROPOSE TO MAKE THIS ORDER FOR THE FOLLOWING REASONS:
- Otis Canada, Inc. is the employer as defined in the Plan.
- The Plan was wound up, effective January 16, 1987.
- As at October 31, 1987 the surplus in the Plan was estimated at $1,191,939.00. This surplus as at March 31, 2006 is estimated at $2,254,650.00.
- The Plan provides for payment of surplus to the Employer on the wind up of the Plan.
- The application discloses that by written agreement made by the Employer, and 100 % of the beneficiaries of the Plan consisting of the five former members and the estate trustees of the estate of the deceased former member who are entitled to payments under the Plan, the surplus in the Plan at the date of payment, before the deduction of wind up expenses, is to be distributed:
a) 87% to the Applicant; and
b) 13% to the beneficiaries of the Plan as defined in the Surplus Sharing Agreement.
- The Employer has applied, pursuant to section 78 of the PBA, and section 8(1)(b) of Regulation 909, R.R.O. 1990 (Regulation), for consent of the Superintendent of Financial Services to the payment of 87 % of the surplus in the Plan as at March 31, 2006, plus investment earnings thereon to the date of payment, and adjusted for actual expenses incurred in connection with the application to the Superintendent of Financial Services for consent to the refund of surplus to the Applicant.
- The application appears to comply with sections 78 and 79(3) of the PBA and with sections 8(1)(b), 28(5), 28(5.1) and 28(6) of the Regulation.
- Such further and other reasons as come to my attention.
YOU ARE ENTITLED TO A HEARING by the Financial Services Tribunal (the “Tribunal”) pursuant to section 89(6) of the PBA. To request a hearing, you must deliver to the Tribunal a written notice that you require a hearing, within thirty (30) days after this Notice of Proposal is served on you.*
YOUR WRITTEN NOTICE must be delivered to:
Financial Services Tribunal
5160 Yonge Street
Attention: The Registrar
FOR FURTHER INFORMATION on a Form for the written notice, please see the Tribunal website at www.fstontario.ca or contact the Registrar of the Tribunal by phone at
416- 590-7294, toll free at 1-800-668-0128, ext. 7294, or by fax at 416-226-7750.
IF YOU FAIL TO REQUEST A HEARING WITHIN THIRTY (30) DAYS, I MAY CARRY OUT THE PROPOSAL AS DESCRIBED IN THIS NOTICE.
DATED at Toronto, Ontario, this 14 day of November 2006.
K. David Gordon
Deputy Superintendent, Pensions
*NOTE—PURSUANT to section 112 of the Act any notice, order or other document is sufficiently given, served, or delivered if delivered personally or sent by first class mail and any document sent by first class mail shall be deemed to be given, served, or delivered on the seventh day after mailing.